At the start of National Living Wage Week the Mayor of London, Boris Johnson has announced that the number of employers paying the London Living Wage in the capital has doubled in the last 12 months. He also confirmed a four per cent increase in the London Living Wage, taking the hourly rate from £8.80 to £9.15 per hour.
Major brands such as ITV, Nationwide and Google have all become accredited as London Living Wage employers over the last year and over 400 companies are now signed up. Many smaller businesses have also committed to the Living Wage including CTS cleaning solutions (the first accredited cleaning company), Stepney City Farm and the East London Liquor Company.
However, more than one in five employed Londoners earned less than the new rate in 2013 and today (3 November) the Mayor announced a renewed focus on encouraging businesses in the hospitality and retail sectors to sign up to the scheme, when he visited Kaffeine, the first coffee shop in the capital to become accredited.
The Mayor of London Boris Johnson said: “It is extremely encouraging to see companies both large and small recognising the benefits of fair remuneration. The London Living Wage rewards hard working Londoners for their valuable contribution to the productivity and growth of this city’s economy. It is a win-win scenario for the workforce and employers alike. Importantly, this isn’t just about economic dividends, but the immeasurable improvement to quality of life and workplace morale. In excess of 400 businesses have made the commitment, but we need even more converts, particularly in the retail and hospitality sectors. I hope that even more organisations this year will decide to do the right thing.”
Paying the London Living Wage delivers benefits for individuals and companies. Research published by academics at Queen Mary University on the costs and benefits of paying the London Living Wage found that over half the number of people earning the Living Wage who were interviewed for a study felt more positive about their workplace after it was introduced. A similar proportion felt more loyal towards their employer. The research also estimated that moving London’s low paid workers onto the LLW would save the Treasury an estimated £823 million a year in increased taxes and reduced benefit payments.
A previous study commissioned by the GLA and conducted by London Economics found that the “most significant impact noted was recruitment and retention, improved worker morale, motivation, productivity and [the] reputational impacts of being an ethical employer”. The study also found that more than 80 per cent of employers believed that the living wage had increased the quality of the work.
Rhys Moore, Director, Living Wage Foundation said: "London is leading the way in championing the Living Wage, and the leadership shown by the Mayor of London has been key to this success. As the recovery continues it’s vital that the proceeds of growth are properly shared. The London Living Wage reflects the unique challenges of working and living in one of the world’s most expensive cities. The London Living Wage reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay."
